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80 firms keen to participate on Vic-Falls Stock Exchange

by Staff reporter
24 Aug 2020 at 07:10hrs | Views
A TOTAL of 80 firms in the financial and capital markets have expressed interest to participate at the soon to be established Victoria Falls Stock Exchange (VFEX).

VFEX is a wholly-owned subsidiary of the Zimbabwe Stock Exchange (ZSE) and is awaiting licensing by the Securities and Exchange Commission of Zimbabwe (Secz).

In recent months, captains of industry have applauded Government's decision to launch the VFEX saying this will attract foreign direct investment to the prime resort town and enhance quick recovery of the tourism industry.

In a recent statement, the ZSE said it will soon be holding virtual meetings with the stakeholders that expressed interest to provide them with detailed information on VFEX project.

"We wish to update the market on the stakeholders that responded to the call for expression of interest. The number of stakeholders that have expressed interest in different categories are as follows; securities dealers 18, sponsors 38, securities custodians six, securities transfer firms three, and investment management firms 15," it said.

On August 14, 2020, the ZSE invited applications from various stakeholders such as security dealing companies, accounting firms, legal practitioners, investment advisors, banks, security custodians and investment management firms to apply for participation at the bourse.

Licensed security dealing firms were eligible to express their interest while securities dealers, accounting firms, banks, legal practitioners and investment advisers wishing to offer sponsor services on VFEX were also eligible to express their interest.

The bourse said custodian firms licensed by the Secz and are part of clearing banks, which are able to clear and settle transactions in United States dollars, are eligible to express their interest.

Also eligible are securities transfer firms licensed by the Secz as well as licensed investment management firms.

Victoria Falls has been designated as a hub for tourism and financial services under the Special Economic Zones (Sez) initiative with a view of attracting tourists as well as luring investment through tourism.

Stakeholders are convinced that a localised bourse in Victoria Falls not only shows devolution of the stock exchange market, but is a good move towards spreading investment flows into the country.

The VFEX will be denominated in foreign currency and targets foreign investors and global capital, especially the mining sector.

Source - chronicle